©IFAD/G. Ludwig Enabling poor rural people to overcome in

Rural poverty in Yemen The Republic of Yemen is one of the driest, poorest and least developed countries in the world. Poverty and food insecurity are strongly linked with the depletion and degradation of land and water resources. It is one of the most water-stressed countries in the world – each Yemeni’s average share of renewable water resources is about one tenth of the average in most Middle Eastern countries and one fiftieth of the world average.

Poverty affects nearly 42 per cent of the country’s population and is mainly a rural phenomenon. Over 80 per cent of poor people reside in rural areas, and almost half of them live on less than US$2 a day. Small-scale farmers, sharecroppers, landless people, nomadic herders and artisanal fishers all suffer from inadequate access to basic necessities such as land, safe water, health care services and education. The population is young and growing rapidly. Two thirds of Yemenis are under 24 years old, and half are less than 15 years of age. More than 50 per cent of all children suffer from . Women are also particularly disadvantaged. In addition to their heavy domestic workload, they provide 60 per cent of the labour in crop cultivation and more than 90 per cent in tending livestock. Despite their vital contributions to the rural economy, women have very limited access to economic, social and political opportunities. Many are illiterate and on average they earn 30 per cent less than men. Poverty is most prevalent in the highlands, the semi-desert areas in the east and northeast, the sand dune strip and areas of the central Tihama plain, and in fishing villages on the Arabian Sea. Food insecurity is most severe in rural highland areas where population densities are high and landholdings are very small. Although only about 2.5 per cent of the country’s land is arable, agriculture is the backbone of the rural economy, with around 90 per cent of rural households involved in crop or livestock production. However, due to low productivity few households can support themselves on agriculture alone and most rely on income from employment or remittances. The main agricultural areas are the terraced, mostly rainfed highland zones and irrigated lowlands in the centre and along the coasts of the Red and Arabian Seas. Yemen produces a limited variety of crops, including coffee, fruit, pulses and vegetables. Khat, a controversial mild stimulant drug is also produced. It plays a major role in the economy, accounting for 8 per cent of gross domestic product (GDP) and 40 per cent of agricultural GDP. Nearly 15 per cent of the workforce is employed in its marketing and production, which uses 40 per cent of the country’s water resources. Typical households spend five times more money on khat than on education. A significant portion of the terraced farming system is deteriorating because of neglect and lack of maintenance, and t he country’s fishery resources have been subject to overexploitation. As a result, Yemen is a food-deficient country that produces less than a third of its needs and imports nearly US$1 billion worth of foodstuffs annually, including 70 per cent of its wheat and 90 per cent of its rice.

Eradicating in Yemen

The Government of Yemen’s Strategic Vision 2025 is a long-term plan to transform the economy into middle-income country status by 2025. It focuses on supporting rainfed agriculture, expanding water harvesting, improving water-use efficiency, cultivating crops such as coffee, potatoes and vegetables, and controlling the cultivation of khat. It also includes investments in research to improve the productivity, quality and competitiveness of the fisheries sector by enhancing marketing infrastructure for refrigeration, storage and processing. Yemen’s strategy paper and the associated five-year development plans aim to reduce the proportion of the population living below the poverty line. Poverty reduction rests on what are referred to as the four pillars of the strategy: economic growth, human resources development, improved infrastructure and social protection. Projects described in the most recent five-year plan increased public investments by nearly US$6 billion. In view of the critical shortage of water resources, the development plan recognizes that the future of agriculture depends on increasing investments and improving the efficiency of both the rainfed sector and the existing irrigated sector. It also proposes a number of other activities, including de veloping and marketing export crops, and improving access to credit and financial resources for rural households. It seeks to upgrade the livestock sector by improving animal health and livestock extension services, introducing better rangeland management practices, and establishing producer associations and groups that will increase the bargaining power of livestock producers.

2 IFAD’s strategy in Yemen

IFAD is currently one of the two largest donors supporting Yemen’s rural agricultural Programmes and projects: 21 sector. IFAD has worked in Yemen since the Fund’s creation, and has acquired a Total cost: US$668.3 million wealth of experience and knowledge of the economy and society, and developed a Total financing from IFAD: US$223.9 million wide network of partners in the country. IFAD’s goal in Yemen is to achieve improved, Directly benefiting: 573,240 households diversified and sustainable livelihoods for poor rural women, men and young people, especially those who depend on rainfed agriculture and livestock production systems in the poorest areas. IFAD has three main strategic objectives in Yemen: • empowering rural communities by strengthening partnerships with civil society organizations and using community-driven approaches so that poor rural people can manage local community development activities; • promoting sustainable rural financial services and pro-poor rural enterprises by developing savings and credit associations for disadvantaged groups in remote rural areas and developing rural enterprises that provide jobs for the unemployed, especially young people and women; • enhancing food security for poor households by restoring the productive agricultural base and improving productivity so tha t poor households can produce enough for household needs and a surplus that can be sold.

Popular participation, gender balance and environmental sustainability are emphasized in all of IFAD's initiatives. In recent years IFAD’s approach in Yemen has focused increasingly on the creation of economic and employment opportunities for poor rural people. IFAD has recently supported the establishment of the Economic Opportunities Fund, a sustainable public-private partnership that provides investments in rural financial services, economic infrastructure and value chain development.

©IFAD/G. Ludwig ©IFAD/G. 3 Ongoing operations

Dhamar Participatory Rural Development Project Al-Dhala Community Resource Management Project Pilot Community-Based Rural Infrastructure Project in Highland Areas Fisheries Investment Project Rainfed Agriculture and Livestock Project Economic Opportunities Programme

Sana’a

Fisheries Investment Project Total cost: US$32.9 million This nationwide project, covering all nine maritime governorates along the Yemeni IFAD debt sustainability framework coast, is managed by the Economic Opportu nities Fund. It aims to improve the (DSF) grant: US$9.1 million economic status of small fisher households by creating sustainable and diversified Duration: 2011-2017 economic opportunities for poor women and men in fishing communities. Cofinancing: European Union (US$5.3 million); Islamic Development The project participants include small-scale fishers, fishers’ organizations, and poor Bank (US$13.3 million) households in coastal communities interested in engaging in aquaculture or starting Directly benefiting: 45,000 households up microbusinesses.

Economic Opportunities Pro gramme Total cost: US$38.6 million The programme seeks to create economic opportunities for poor rural people. It IFAD DSF grant: US$12.9 million works with smallholder and landless households to develop value chains for three Duration: 2010-2016 high-value agricultural commodities: coffee, honey and horticulture products. These Cofinancing: European Union value chains have significant potential for reducing poverty and increasing economic (US$9.7 million); Islamic Development Bank (US$10.5 million) growth through export market expansion and rural job creation. The programme Directly benefiting: 14,000 households also promotes microbusinesses to meet demand for goods and services in rural areas. The participants include coffee producers with small terraced landholdings, smallholder farmers, sharecroppers, and landless households interested in protected horticulture, mobile honey production and rural small businesses. Women constitute the key target group for microbusinesses.

Rainfed Agriculture and Livestock Project Total cost: US$42.2 million This project helps reduce rural poverty and improve the management of natural IFAD loan: US$16.6 million resources in five of the most disadvantaged areas of the governorates of Al-Mahweet, Duration: 2009-2014 Hajjah, Hodeidah, Lahej and Sana’a. Rapid population growth is causing increased Cofinancing: World Bank, pressure on natural resources in these areas where the local economy is International Development Association (IDA) (US$19.6 million) predominantly based on rainfed agriculture and livestock. The objectives of the Directly benefiting: 185,000 households project are to: • assist smallholder farmers, herders, landless people and woman-headed households to strengthen their processing and marketing systems, protect assets such as soil, water, rangelands, seeds and animals, and increase off-farm household income; 4 • upgrade and diversify production while reversing rapidly increasing resource degradation, by fostering participatory management of natural resources; • introduce microfinance services and promote the development of new microenterprises, income-earning activities, access to markets and partnerships with the private sector.

Through activities in 23 districts, the project supports efforts to make soil conservation and water harvesting more effective in the uplands. It also empowers poor communities to participate in an d benefit from community-based development planning and implementation.

Pilot Community-Based Rural Infrastructure Project for Highland Areas In the highlands, isolation and a lack of basic infrastructure limit development and Total cost: US$14.0 million contribute to poverty. As a result of difficult conditions in rural areas, migration to IFAD loan: US$10.8 million urban areas is increasing. IFAD DSF grant: US$1.8 million IFAD grant: US$400,000 The project’s goal is to improve the living standards of poor rural people in remote Duration: 2007-2013 highland communities by: Directly benefiting: 60,000 household • empowering communities to have a role in improving infrastructure; • reducing isolation and improving mobility and access to markets and services; • institutionalizing community-led access road improvement within the national framework for road development; • improving the access of poor households to sustainable drinking water supplies.

The project focuses on upgrading the lowest category of roads, known as quaternary roads, which reach the most disadvantaged villages in the highlands. To maximize the project’s benefits, all village access roads improved under the project will be linked to other upgraded rural roads, and priority will be given to links with intermediate road networks in IFAD project areas in Dhamar, Al-Dhala and Raymah. The proje ct will also link village access roads with improved intermediary roads in the poorest districts of 11 highland governorates.

Al-Dhala Community Resource Management Project Almost one third of rural people in Al-Dhala Governorate are poor, and most of Total cost: US$22.8 million them live in villages in remote areas. The project aims to improve their living IFAD loan: US$14.3 million standards and income security by supporting better management of the resource Duration: 2007-2014 base and to increase opportunities for generating income. Directly benefiting: 15,600 households The specific objectives of the project are to: • build the capacity of communities to plan, manage, implement and monitor their own development activities; • provide access to water and protect and restore the natural resource base; • equip and support farming households to enable them to improve their agricultural output and pursue ot her opportunities for generating income; • empower poor people to participate in and benefit from community-based planning and implementation, and develop their institutional capacity.

5 The project works to promote women’s development and ensure that they are an integral part of the community’s decision-making processes. It builds community institutions that are capable of sustaining development and maintaining momentum.

Dhamar Participatory Rural Development Project Total cost: US$24.1 million The Dhamar Governorate includes an important agricultural zone. Poverty is IFAD loan: US$14.0 million widespread in highland villages where up to 70 per cent of the people are poor. IFAD DSF grant: US$7.5 million Entire communities live in conditions of deprivation, with a standard of living that Duration: 2004-2012 has remained unchanged for hundreds of years. Women, who have the main Directly benefiting: 26,000 households responsibility of raising livestock, producing crops and managing their households, are largely illiterate, have limited rights of ownership or control of assets, and their participation in social and civic affairs is restricted. The project’s principal goals are to improve the food security of subsistence farmers, increase family incomes and improve the living conditions of small farm households and village communities in Dhamar. It also works to develop poor people’s participation in planning and implementing activities. Project activities are designed to: • empower communities, particularly women and poor people, to participate in and reap the benefits of development planning under the project; • remove physical, infrastructural and social constraints; • equip and support farm households to increase output so they can secure basic food supplies, produce marketable surpluses and develop income-generating activities. ©IFAD/G. Ludwig ©IFAD/G.

6 Completed operations

Al-Mahara Rural Development Project Southern Regional Agricultural Total cost: US$17.8 million Development Project IFAD loan: US$12.2 million Total cost: US$28.5 million Cofinancing: United Nations Development Programme (UNDP) IFAD loan: US$2.5 million (US$665,000) Cofinancing: Arab Gulf Programme for Development (AFESD) Duration: 2000-2009 (US$299,000); Swiss Agency for Development and Cooperation Directly benefiting: 6,750 households (SDC) (US$5.8 million); World Bank, IDA (US$12.3 million) Duration: 1988-1996 Raymah Area Development Project Directly benefiting: 120,000 households Total cost: US$17.0 million IFAD loan: US$12.1 million Central Highlands Agricultural Duration: 1998-2007 Directly benefiting: 12,000 households Development Project Total cost: US$20.0 million Southern Governorates Rural IFAD loan: US$4.0 million Cofinancing: United Kingdom’s Department for International Development Project Development (DfID) (US$1.0 m illion); World Bank, IDA Total cost: US$38.4 million (US$8.0 million) IFAD loan: US$11.3 million Duration: 1985-1991 Cofinancing: World Bank, IDA (US$19.7 million) Directly benefiting: 8,325 households Duration: 1998-2005 Directly benefiting: 8,250 households Agricultural Research and Development Project Tihama Environment Protection Project Total cost: US$32.4 million Total cost: US$11.7 million IFAD loan: US$5.8 million IFAD loan: US$9.8 million Cofinancing: Italy (US$8.9 million); World Bank, IDA Cofinancing: UNDP (US$86,000) (US$6.0 million) Duration: 1995-2002 Duration: 1983-1991 Directly benefiting: 7,000 households Directly benefiting: Local research scientists

Fourth Fisheries Development Project Total cost: US$39.8 million IFAD loan: US$6.5 million Cofinancing: European Union (US$16.3 million); World Bank, IDA (US$13.1 million) Duration: 1992-1999 Directly benefiting: 3,500 households

Agricultural Credit Project Total cost: US$42.3 million IFAD loan: US$15.0 million Cofinancing: Arab Fund for Economic and Social Development (US$19.0 million) Duration: 1991-1998 Directly benefiting: 15,465 households

Eastern Regional Agricultural Development Project Total cost: US$24.5 million IFAD loan: US$10.5 million Cofinancing: Islamic Development Bank (US$7.1 million); UNDP (US$500,000); World Food Programme (US$500,000) Duration: 1989-1997 Directly benefiting: 9,100 households ©IFAD/G. Ludwig ©IFAD/G.

7 Third Fisheries Southern Uplands Rural Building a poverty- Development Project Development Project Phase II free world Total cost: US$21.4 million Total cost: US$81.7 million IFAD loan: US$5.0 million IFAD loan: US$14.0 million The International Fund for Agricultural Cofinancing: AFESD (US$8.6 million); Cofinancing: Swiss SDC (US$6.0 million); Development (IFAD) works with poor European Union United Arab Emirates, Abu Dhabi rural people to enable them to grow (US$3.4 million); World Bank, IDA (US$10.0 million); World Bank, IDA and sell more food, increase their (US$6.0 million) (US$17.0 million) incomes and determine the direction Duration: 1983-1988 Duration: 1981-1984 of their own lives. Since 1978, IFAD Directly benefiting: 700 households Directly benefiting: 60,000 households has invested about US$13.2 billion in grants and low-interest loans to Wadi Beihan Agricultural Tihama Development developing countries through projects Development Project Project III (Wadi Mawr) empowering about 400 million Total cost: US$18.1 million Total cost: US$87.6 million people to break out of poverty, IFAD loan: US$6.0 million IFAD loan: US$12.0 million thereby helping to create vibrant rural Cofinancing: World Bank, IDA Cofinancing: European Union communities. IFAD is an international (US$8.0 million) (US$3.0 million); Germany, Kreditanstalt financial institution and a specialized Duration: 1982-1988 für Wiederaufbau (US$8.4 million); Kuwait Fund for Arab Economic UN agency based in Rome – the Directly benefiting: 4,150 households Development (US$12.7 million); United Nation’s food and agricultural DfID (US$3.2 million); World Bank, IDA (US$15.0 million) hub. It is a unique partnership of Agricultural Support 167 members from the Organization Services Project Duration: 1980-1988 Directly benefiting: 6,200 households of the Petroleum Exporting Total cost: US$14.6 million Countries (OPEC), other developing IFAD loan: US$9.8 million countries and the Organisation for Duration: 1981-1985 Economic Co-operation and Directly benefiting: 11,200 households Development (OECD).

Contacts Omer Zafar Country Programme Manager IFAD Via Paolo di Dono, 44 00142 Rome, Italy Tel: +39 06 5459 2348 Fax: +39 06 5459 3348 E-mail: [email protected]

For further information on rural poverty in Yemen visit the Rural Poverty Portal: http://www.ruralpovertyportal.org

Enabling poor rural people to overcome poverty

Intern ational Fund for Agricultural Development Via Paolo di Dono, 44 00142 Rome, Italy Tel: +39 06 54591 Fax: +39 06 5043463 E-mail: [email protected] www.ifad.org December 2011 ©IFAD/G. Ludwig ©IFAD/G.